Investing in Greece
Investing in Greece has been on the radar of international funds, especially in the domains of energy, tourism, new technologies, and real estate. However, the bureaucratic and administrative challenges in Greece have often posed difficulties for investors. Nevertheless, a recent research conducted under the auspices of Cardiff Metropolitan University has provided a guide for international funds investors to navigate the investment environment in Greece.
One of the crucial factors in improving the investing environment in Greece is the digitalization of the public sector. The pandemic crisis of Covid-19 has fastened the digital revolution of the Greek administration. Governmental cyber locations have created digital communication channels with the state, facilitating a great number of administrative procedures within minutes via computers. Microsoft’s recent investment in Greece is a testimony to the country’s potential as a digital liaison and consistent base for data centers and innovative technologies.
Furthermore, alternative sources of funding such as EquiFund have also emerged as a viable option for start-up companies and entrepreneurs who wish to avoid traditional banking sectors. EquiFund is an initiative created by the Hellenic Republic in cooperation with the European Investment Fund (EIF) that understands the need for private equity and venture capital ecosystems to thrive.
Finally, tax incentives have been provided to foreign investors who aim to invest their money in the Greek economy. For example, tax breaks have been given to “digital nomads” who work remotely and move to Greece. This tax break not only benefits freelancers but also foreign companies that plan to invest in Greece. The first relevant platform has been launched from the regional district of Crete, providing basic information about the opportunities given.
In conclusion, Greece has been making significant progress in improving its investment environment. The digitalization of the public sector, alternative funding sources, and tax incentives are some of the initiatives that Greece has undertaken to attract international funds. Despite the challenges that Greece has faced, its potential for growth and investment opportunities should not be overlooked.
Hospitality and tourism
Greece is renowned not only for its pleasant climate and eco-friendly advantages, but also for its hospitality, attracting individuals from around the globe who seek opportunities to establish themselves in the country. Notably, the demand for property has increased not only in tourist accommodations and hotels, but also in residential and commercial real estate, creating a highly lucrative market for property investments. The economic downturn of the past decade resulted in a decline in real estate prices in urban areas, but with the thriving tourism industry in Athens and Thessaloniki, these two cities now offer ample opportunities for investment.
Additionally, Greece has introduced the “golden visa” residence program which offers non-EU citizens the opportunity to acquire residency in Greece through the purchase of valuable immovable assets. Within certain limits and circumstances, anyone who acquires a high-value immovable asset in Greece has the right to obtain a residential permit. As a result, individuals with significant financial resources have invested in the program by purchasing property in Greece.
Article 16 (Law 4251/2014) is a crucial provision that promotes public interest by introducing innovative arrangements. It outlines two types of investments: “strategic” investments (identified as such by a decision of the Interministerial Committee for Strategic Investments) and investments with a “positive impact on national economy and development.” Residence permits granted for the latter are valid for five years and can be renewed for an equal period each time. In contrast, permits granted for strategic investments are valid for ten years and are renewable for an equal period provided that the relevant requirements are met. Notably, residence permits can be issued not only to the investor but also to up to 10 additional persons (depending on the size of the investment) involved in the implementation of the investment plan.
In conclusion, over the past years, investments have become imperative for the advancement of businesses in Greece, as they are seen as crucial for the improvement of the local economy and the financial growth of numerous companies. Sectors such as technology, tourism, infrastructure, and energy are especially vital in this regard. While investors may encounter certain challenges and disadvantages when launching their ventures, such occurrences are not uncommon in any country. What sets Greece apart are its unique and exceptional features, such as its climate, geography, and strategic location at the crossroads of three continents, its rich geological and energy resources, its rich traditions and history, as well as its natural beauty. These factors make Greece a highly attractive destination for investment.